Correlation Between GENERAL and Allegiant Travel
Specify exactly 2 symbols:
By analyzing existing cross correlation between GENERAL ELEC CAP and Allegiant Travel, you can compare the effects of market volatilities on GENERAL and Allegiant Travel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GENERAL with a short position of Allegiant Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Allegiant Travel.
Diversification Opportunities for GENERAL and Allegiant Travel
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GENERAL and Allegiant is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP and Allegiant Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegiant Travel and GENERAL is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GENERAL ELEC CAP are associated (or correlated) with Allegiant Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegiant Travel has no effect on the direction of GENERAL i.e., GENERAL and Allegiant Travel go up and down completely randomly.
Pair Corralation between GENERAL and Allegiant Travel
Assuming the 90 days trading horizon GENERAL ELEC CAP is expected to under-perform the Allegiant Travel. But the bond apears to be less risky and, when comparing its historical volatility, GENERAL ELEC CAP is 2.63 times less risky than Allegiant Travel. The bond trades about -0.01 of its potential returns per unit of risk. The Allegiant Travel is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,490 in Allegiant Travel on September 2, 2024 and sell it today you would earn a total of 2,694 from holding Allegiant Travel or generate 49.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 24.6% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. Allegiant Travel
Performance |
| Timeline |
| GENERAL ELEC CAP |
| Allegiant Travel |
GENERAL and Allegiant Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Allegiant Travel
The main advantage of trading using opposite GENERAL and Allegiant Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL position performs unexpectedly, Allegiant Travel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Allegiant Travel will offset losses from the drop in Allegiant Travel's long position.| GENERAL vs. AEP TEX INC | GENERAL vs. US BANK NATIONAL | GENERAL vs. American Express | GENERAL vs. Chevron Corp |
| Allegiant Travel vs. Azul SA | Allegiant Travel vs. Alaska Air Group | Allegiant Travel vs. International Consolidated Airlines | Allegiant Travel vs. Sun Country Airlines |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |